Review for the Ministry of Transport Te Manatū Waka - Performance Improvement Framework - State Services Commission
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Performance Improvement Framework Review for the Ministry of Transport Te Manatū Waka January 2018
Contents
Accepting the Challenge 3
The Ministry of Transport’s commitment 4
Central Agency support 9
The Challenge 10
Four-year Excellence Horizon 11
Performance challenge 13
What will success look like? 18
Strengths and Opportunities 19
Overview 20
Strengths and opportunities in detail 22
Appendices 43
Lead Reviewers’ Acknowledgement 44
About the Ministry of Transport 45
Framework Questions 46
Ratings Scale 47
Interviewees 48
Introducing the Ministry of
Transport’s Lead Reviewers
Dr Paul Reynolds Dr Keith Turner
Dr Reynolds currently serves as Deputy Chair of Landcare Research Dr Turner is a professional director and is currently Chair of Fisher
Ltd, director of AgResearch Ltd, Chair of the Sir Peter Blake Trust, a and Paykel Appliances Ltd and Chair of specialist engineering
trustee of the Eastland Community Trust and Chair of the Our Land consultancy Damwatch. He has several Australian directorships
and Water National Science Challenge. - South Australia Power Networks, NSW TransGrid and Victoria
Power Networks Pty Limited. He has recently completed his term
He was Chief Executive at the Ministry for the Environment (MfE)
as a director of Chorus Limited and has previously served on the
from 2008 to 2015, when he also led the Natural Resources Sector
Board of Spark Infrastructure, an Australian listed company, as
Group of Chief Executives and served as chair of the Leadership
Chair of Emirates Team New Zealand and Deputy Chair of Auckland
Development Centre and the Advisory Board to the Victoria University
International Airport Limited.
of Wellington School of Government. Previous senior public service
roles were at the Ministry of Research, Science and Technology Dr Turner has 40 years’ executive experience in the New Zealand
and the Ministry of Agriculture and Forestry. Dr Reynolds began his power industry, including as CEO of Meridian Energy, from its
career as a research scientist at the University of Missouri, then at the establishment in 1999 to 2008. He holds a PhD in electrical
Department of Scientific and Industrial Research and HortResearch. engineering and is a Distinguished Fellow of the Institute of
He holds a PhD in Biochemistry from the University of Otago. Professional Engineers of New Zealand.
He has been a Lead Reviewer for the PIF Reviews of Ministry for
Pacific Peoples and Crown Law Office and for the PIF Follow-up
Review of the Ministry of Culture and Heritage.
Published January 2018. ISBN 978-0-478-43487-3 (Online) Web address: www.ssc.govt.nz/pif
© Crown copyright
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The Performance Improvement Framework (PIF) enables
State Service leaders to identify opportunities for
improvement, building positive outcomes for
New Zealand.
PIF is designed for agencies in the New Zealand State sector.
The PIF Review is a valuable tool that helps leaders drive organisational
change. Change that will improve future agency performance, resulting in better
outcomes for New Zealand.
Independent reviewers lead each PIF Review. They have significant leadership
experience across New Zealand’s public and private sectors. Their fresh
perspective helps to stimulate ‘new thinking’ amongst agency leaders as they
grapple with the critical issues and challenges that lie ahead for their agency.
The review is a future-focused exercise. The reviewers consider the questions:
“What is the contribution New Zealand needs from this agency? What is the
performance challenge to make that contribution over the next four years?”
Taking a four-year horizon encourages medium-term strategic thinking and
helps leaders and agency staff to understand what success would look like. Peter Hughes
State Services Commissioner
Then, considering current capability to meet future challenges, the reviewers
evaluate the agency’s preparedness for the future and describe its performance
improvement priorities.
Each PIF Review delivers a published report, ensuring transparency and
supporting accountability to New Zealanders.
The PIF Review is a valuable tool that helps
leaders drive organisational change.
Performance Improvement Framework – Review for the Ministry of Transport 1Performance Improvement Framework
Four-year Excellence Horizon
What is the agency’s performance improvement challenge?
Delivering Government Priorities
How well is the agency responding to government priorities?
Delivering Core Business
In each core business area, how well does the agency deliver value to its customers and New Zealanders?
In each core business area, how well does the agency demonstrate increased value over time?
How well does the agency exercise its stewardship role over regulation?
Organisational Management
How well is the agency positioned to deliver now and in the future?
Leadership and Delivery for Relationships People Financial and
Direction Customers and Development Resource
New Zealanders Management
Purpose, Vision Customers Engagement with Leadership Asset
and Strategy Operating Model Ministers and Workforce Management
Leadership and Sector Development Information
Collaboration and
Governance Partnerships Contribution Management Management
of People Financial
Values, Behaviour Experiences of
Performance Management
and Culture the public
Engagement with Risk Management
Review
Staff
Performance Improvement Framework – Review for the Ministry of Transport 2Accepting the
Challenge
1
In this section:
The Ministry of Transport’s commitment
Central Agency support
Performance Improvement Framework – Review for the Ministry of Transport 3The Ministry
of Transport’s
commitment
Introduction Our Performance The Ministry also needs to be adaptive
and enabling of change, and lead a
We welcome this review, which is Challenge collaborative group of government
particularly timely for the Ministry. The reviewers recognised that the transport sector agencies.
We want to thank the reviewers for transport system faces complex
the insights that they have provided, policy and regulatory demands that
and also thank our stakeholders who need to be addressed. These include
have supported the review process the disruption that is on the horizon
and provided their own views on the from technology, the wider policy
type of Ministry that is needed for the context across government (including
future. Auckland, climate change, regional
The reviewers largely undertook their development and housing, and the
work in an iterative process alongside impact of transport on equitable access
the Ministry’s own organisational to health, social services and work) and
review process. The Ministry took more transport specific issues such as
decisions on its organisational review modal neutrality and the need to focus
in June, and marked the beginning of on the development of an integrated
wider change when the new Ministry transport system.
structure came into effect in October The reviewers articulated what
2017. So while the findings from this New Zealand needs from the Ministry This review sets a bold
PIF Review largely reflect the position
prior to the start of our organisational
– leadership in delivering an effective, challenge. As a
efficient transport system that meets
changes, we are pleased to see that economic, social, cultural and Ministry, we are up for
they are well aligned with our own
thinking on how the Ministry needs to
environmental needs now and adapts to that challenge.
meet changing needs and aspirations.
change and lift its performance over This means enabling an integrated
the next three to four years. transport system that supports
This review sets a bold challenge. New Zealanders to gain equitable
As a Ministry, we are up for that access to goods, employment and
challenge. We are already underway services; is cognisant of the potential
through our major organisational of all modes; is resilient and safe to
change programme that started in use; minimises the impact on health
October. Our new structure embeds outcomes and the environment; and
our commitment to build capability and is well-positioned to take advantage of
capacity in the major areas identified continuous evolution in transport and
by the reviewers. We are only three associated technologies.
months into our organisational The reviewers noted the need for the
transformation and we know where we Ministry to be articulating credible
need to focus our efforts to make the scenarios for the future; providing
most important gains. The reviewers’ advice to the Government that brings a
insights have strengthened this focus, more cohesive and strategic transport
and our new organisational action perspective to a range of economic
plan will drive the transformation of and social issues; and developing
our operating model over the next few policy approaches that are supported
years. by strong data and analytics and
informed by the needs of customers
and transport suppliers.
Performance Improvement Framework – Review for the Ministry of Transport 4Responding to For example, we have worked closely We will use our unique position to
with agencies such as Auckland reach across the State sector and
our performance Council, Auckland Transport, the work on shared outcomes where
challenge New Zealand Transport Agency (NZTA), transport has a role to play. By June
the State Services Commission (SSC) 2018, we will be ‘around the table’
We welcome the reviewers’ recognition
and the Treasury on the Auckland for all key cross-government policy
of the need for the Ministry, as
Transport Alignment Project (ATAP), initiatives that have a transport
leader within the transport system,
and with a wide range of government component.
to be collaborative and systems-
and non-government agencies on the
focused – seeking to orchestrate the We will not be able to do this alone.
development of the Intelligent Transport
transport system to achieve optimum We will need the support of other
Systems Action Plan. Both are examples
performance. government departments and transport
of future-focused, system-wide, strategic
Crown entities to allow us to fulfil our
The Ministry’s performance challenge, policy development, co-created with
unique role in the system.
given its stewardship and leadership a range of other agencies. We are
roles for the transport system, sits in committed to applying this approach
four key areas: more widely to our work in the future. Developing a medium-term
strategy
• achieving clarity of purpose
Achieving clarity of The reviewers recognised the excellent
• developing a medium-term strategy
underpinned by strong analytics purpose work that the Ministry has done on the
longer-term issues and outcomes for
• growing our capability for We have already made some progress
the transport system. We understand
collaboration clarifying our purpose, vision and
that the challenge is now for us to
• re-booting the organisation. values through our organisational
better connect that longer-term view
review to support the Ministry’s
This is a bold challenge, but one that to the more immediate transport policy
leadership role. Over the next 12 to
we readily accept. We recognise that and operational decisions that need to
18 months, we will embed these as
achieving it will require significant and be made.
a core foundation for the Ministry’s
sustained effort by the Ministry over the culture, in our business planning, and To make that connection, by the
next four years and beyond. It will also in the way we work. For example, we end of 2018, we will have worked
require the Ministry to develop new and have started to recruit and assess collaboratively alongside our
innovative ways of delivering on our staff performance based on the ability stakeholders to identify the challenges
core responsibilities, and require us to understand and contribute to the that lie ahead for the transport system
to bring new perspectives as we work purpose and vision, and to exhibit the and the medium-term choices for the
alongside our key stakeholders in the Ministry’s values in the way we work. Government. This work will take a
future. mode-neutral approach. It will provide
A key focus over the next 6 months will
We are up for the challenge, but we are a clearer understanding of emerging
be for the Ministry to embed its unique
not starting from scratch. The reviewers transport needs and opportunities, and
leadership role in the sector. This will
recognised that some of our work the contribution each mode can make.
involve us taking a system-wide focus
provides examples of the way that we It will provide a framework for us to
and a strategic, long-term view, which
want to operate in the future – we need know whether we are on track towards
only we are in a position to do. We will
to further develop these approaches our longer-term goals.
lead the collaborative development
and embed them as part of our day-to- of policy on both investment and This will allow us to take corrective
day operating model. regulatory settings. actions where and when necessary,
particularly in relation to investment
settings and regulatory design.
Performance Improvement Framework – Review for the Ministry of Transport 5One of the critical strategic levers Strengthening our analytical capability The Ministry has increased the
the Government has for shaping the is critical to developing better energy and focus we are placing on
transport system over the medium- foresight and policy. As part of the stakeholder engagement. We have
term is the Government Policy organisational review, we have created created a specific Governance and
Statement on Land Transport (GPS), a range of new teams focused on Engagement Group within the Ministry,
which defines how the National Land improving our analytical and modelling and will develop a comprehensive
Transport Fund will be invested. We capabilities. This includes a new stakeholder engagement strategy
will partner with the Treasury, NZTA, Regulatory and Data Group and, by June 2018. We will continue to
KiwiRail and others to develop advice within that Group, a team specifically step up our efforts to engage and
to the Minister of Transport on the focusing on Analytics and Modelling. collaborate within the Public Service,
GPS, so that it fulfils its potential in We will also develop a new analytical with the transport Crown entities, and
addressing the outcomes that we seek framework that should help improve with transport system stakeholders.
for the transport system. We expect a our ability to draw value from data and
We are already deepening our
new GPS to be published in 2018. develop evidence-based policy. We
engagement with stakeholders,
look to Central Agencies and other
In addition, we are developing and moving where appropriate to a
government departments to support
governance arrangements and a work co-creation model. For example, we
this effort by sharing knowledge,
programme to meet our regulatory have created a leadership forum for
expertise and examples of analytical
stewardship challenge by June 2018. Transport Sector Leaders, comprising
tools and frameworks used elsewhere
The aim of this work is, in partnership the Chief Executives of all the
in the State sector.
with the transport regulators, to transport Crown entities and State
deliver a transport regulatory system Owned Enterprises. We intend to step
that enables innovation, while Growing our capability for up the role of this Group in the future
supporting an effective, safe, and collaboration to take a more central role in shaping
secure transport system that meets the strategic policy agenda.
To give effect to the Ministry’s system
New Zealand’s needs. It will include:
leadership role we need to move from We will benefit from Central Agencies’
• looking at the regulatory settings for consulting on particular policies to support and knowledge of new
transport, to ensure that the type of having a more collaborative culture, approaches and techniques for
regulation used is appropriate to the where we work more in partnership this type of open and participative
circumstances with stakeholders on critical approach. Central Agencies have, by
• ensuring that regulators have the issues. We will need to develop a the very nature of their roles within
right tools, resources and capability sophisticated approach to this as we the State sector, developed a lot of
to carry out their roles effectively have numerous public and private custom and practice in facilitating
sector stakeholders and a wide range knowledge-sharing and coordinating
• creating feedback loops in the
of complex policy issues that we need effort across a range of stakeholders.
system and responding to emerging
to advance. The Ministry will benefit from drawing
issues in a timely manner so that
on their collective experiences.
the suite of transport regulation As noted above, we already have
We also need Central Agencies to
remains fit for purpose and does some good examples of collaborative
work closely with us in some policy
not have unintended consequences, work that have delivered positive
projects. For example, the Treasury
and results. We will build off the strong
and SSC have been partners in the
• looking at how our legislation foundations that these initiatives have
ATAP process, and major projects
should evolve over time to support provided.
such as the GPS will benefit from
emerging technology. similar levels of Central Agency
involvement.
Performance Improvement Framework – Review for the Ministry of Transport 6Re-booting the Ministry We have also created a new dedicated
team within the Ministry to focus on
We agree with the reviewers that we business integrity, continuity, risk
need to reinvigorate the Ministry in management and performance. We
order to drive it forward to become want to draw upon the expertise
the high performing organisation that and knowledge of Central Agencies
we want it to be and that New Zealand in developing high-performing
needs it to be. This means re-orienting organisations. For example, we have
the Ministry so we can give full effect already commenced working with
to our stewardship role, and provide the Department of the Prime Minister
future-focused, integrated and system- and Cabinet and the New Zealand
wide advice to Government and Intelligence Community on improving
deliver increased value over time. our protective security practices.
We have made good progress We also want to draw on the SSC’s
down this path of organisational workforce development work and
transformation. Areas that we will Central Agencies’ experience around
address over the next four years four-year planning.
include: In 2019, we will evaluate how far we
• embedding the Ministry’s new have progressed down the path of our ...re-orienting the
culture transformation and to ensure we are Ministry so we can give
• ensuring our corporate systems
still on-track.
full effect to our
support a high performing Ministry
stewardship role,
• providing high quality advice that is
free, frank and fearless and provide future-
• developing a much more focused, integrated and
collaborative working style system-wide advice
• strengthening the capability of our
staff.
to Government and
Through our recent transformation, the
deliver increased value
Ministry has already started to look at over time.
its capacity and align its capabilities
with its new way of working.
We are developing our managers
and staff. We want to draw on the
broader skills and experiences in the
State sector and across the transport
system by utilising secondments and
talent exchange arrangements, and we
look to Central Agencies to support
and facilitate this process.
Performance Improvement Framework – Review for the Ministry of Transport 7From left to right: Bryn Gandy, Paul Laplanche, Kirstie Hewlett, Robyn Smith, Karen Lyons, Nick Brown and Peter Mersi (Chief Executive and Secretary for Transport)
The way forward
As we said at the beginning of this response, we welcome this thoughtful and
insightful PIF Review.
The PIF Review has helped the Ministry to clarify its performance expectations
and provides a foundation for us to develop our new organisational strategy.
The Ministry’s vision is well aligned with our performance challenge (being
a great collaborator, solving problems and interpreting trends, enabling new
technologies, and taking a whole-of-system approach).
While we are at base camp now, we can see our destination and preferred route
to get there. With the support of our stakeholders we are ready to take the next
step.
By March 2018, we will have developed a plan of action that maps out all of
the work we will need to commence or carry on in order to address the issues
raised by the PIF reviewers and identified through our own organisational
transformation process.
Peter Mersi, Bryn Gandy, Karen Lyons, Kirstie Hewlett, Nick Brown, Paul Laplanche and Robyn Smith
Chief Executive and Senior Leadership Team
Performance Improvement Framework – Review for the Ministry of Transport 8Central Agency
support
An effective transport system on Transport that has evolved into a • strengthen its analytical capability to
contributes to an economy, environment continuously researched multi-modal develop better foresight and policy.
and society that works for New instrument driving system impacts. Improving analytical and modelling
Zealanders, now and in the future. capabilities will be a significant
We agree that the Ministry, in
element of this along with an
The Ministry of Transport (the responding to the challenges and
analytical framework that supports
Ministry) is the Government’s principal opportunities the Lead Reviewers have
the Ministry to develop evidence-
transport adviser, leading advice to the identified, should focus on: achieving
based policy
Government about long-term priorities clarity of purpose; developing a
and challenges in the transport system, medium-term strategy underpinned by • move to a more collaborative culture,
medium term direction, and day-to- strong analytics; growing its capability where it works in partnership with
day policy decisions. It assists the for collaboration and re-booting the stakeholders on critical issues. This
Government give shape and effect to its organisation. The Ministry’s recent will require a more sophisticated
transport policy for New Zealand across organisational review and changes approach.
all modes and regions, in collaboration it has made over the last six months We have committed to providing that
with other transport sector agencies have begun to address some of support and assistance where we are
and stakeholders. It has a central role these challenges. In implementing able. The Central Agencies will be
in improving the overall performance its Commitment the Ministry needs involved, at a fit-for-purpose level, in
of the transport system, and ensuring to ensure that the transport sector supporting policy co-creation. Central
better value from transport system agencies are joined-up and work agency support for major projects
investments. collaboratively. This will require the will continue to be available to the
Ministry to demonstrate a combination Ministry in helping them to deliver on
This PIF Review report outlines the
of long-term vision, medium-term their outcomes. We will contribute
key challenges and opportunities for
strategy setting and oversight and our analytical expertise where we can
the Ministry leadership in a context of
partnership in delivering for improved make a difference, and will share our
emerging technologies and evolving
outcomes. experience of facilitating knowledge
customer preferences and behaviours.
sharing and coordinating efforts across
This context is challenging and complex The Ministry has asked for our
a range of stakeholders. When a
in a country with distinct needs and assistance and support to:
significant shift is required to traditional
opportunities on a region-by-region and
• lead the collaborative development ways of working, it is important that
city-by-city basis.
of policy on transport system central government agencies line up to
We concur with the Lead Reviewers’ investment and regulatory settings deliver the shift.
observations that the Ministry’s future across government and to work on
We are confident in the Ministry’s future
success will emerge from: policy advice shared outcomes where transport
and its ability to deliver to its excellence
for the transport sector that is integrated has a role to play - to do this they
horizon.
with wider government policy; industry- may need our support to be at the
alignment on the major areas of focus; right tables
and a Government Policy Statement
Peter Hughes Gabriel Makhlouf Andrew Kibblewhite
State Services Commissioner Secretary to the Treasury Department of the Prime Minister and Cabinet
Performance Improvement Framework – Review for the Ministry of Transport 9The Challenge
2 In this section:
Four -year Excellence Horizon
Performance challenge
What will success look like?
Performance Improvement Framework – Review for the Ministry of Transport 10Four-year
Excellence Horizon
In undertaking this review the Lead Reviewers considered: “What is the
contribution that New Zealand needs from the Ministry of Transport and,
therefore, what is the performance challenge? If the Ministry meets the
performance challenge, what would success look like in four years?”
Context Technological developments provide
new options to address the challenges
Transport systems are entering a of funding and pricing to build the
time of disruptive change driven infrastructure needed and ensure
by, amongst other things, the rapid equitable access within and across
emergence of new technologies and generations.
increasing global demands for de-
carbonisation. Industry is engaging There are increasing pressures
actively with new technologies that on the country’s existing transport
allow improved and/or innovative infrastructure arising from population,
service delivery and cost reduction. tourism and economic growth with
Some consumers are early adopters; consequential increases in freight.
others will follow as new technologies Recent major earthquakes and
deliver better travel experiences, weather events have highlighted
greater access and efficiency, weaknesses in the resilience of that
infrastructure.
improved safety and cost savings.
Depending on how it is
Safety has been an important driver
Depending on how it is delivered,
transport can be an enabler for, or for the regulatory model for all forms delivered, transport can be
impede, economic growth and social of transport in New Zealand, but too an enabler for, or impede,
strong a focus on risk minimisation
participation and cohesion. There
may block opportunities for innovation. economic growth and
are particular transport infrastructure
challenges in New Zealand due There are also challenges in providing social participation and
a national regulatory model that
to the country’s geography, small
is flexible enough to allow for the cohesion.
population for its land mass, as
well as the concentration of around differing needs of our biggest urban
30% of the population in Auckland centre and the many smaller regional
and the balance widely dispersed centres that rely on a network of rural
throughout the rest of the country. roads to support their communities
Due to geography and history, there is and ‘tourist highways’ to NZ’s great
a high usage of private road transport outdoors.
compared to public transport by This means that models and
New Zealanders. New technologies approaches to transport policy,
may assist in addressing the the underpinning regulatory
geographic challenges and have the model and the performance of the
potential to reduce or, perversely, to different agencies that comprise the
reinforce New Zealanders’ attachment government transport sector are all
to private transport options. under pressure to change.
Performance Improvement Framework – Review for the Ministry of Transport 11…within this context The newly appointed Secretary
for Transport and Chief Executive
The Ministry of Transport (the is alive to the challenges and the
Ministry) faces a multitude of need for change. This is on the
issues at this time (from severely back of a hugely demanding year
stressed modes to rapidly changing with significant fall-out from a fraud
technology), without strategy-led, perpetrated in the organisation as well
clear, well-stated and -communicated as the consequences of the Kaikōura
conceptual frameworks to: earthquake. The earthquake placed
• support the role it needs to play for new, urgent demands on the work
New Zealand programme of the Ministry and had a
dramatic physical impact as well. The
• guide consistency in its thinking
building the Ministry was in could not
• enable it to assert the leadership
that the whole system and sector
be re-entered and the organisation The newly appointed
currently finds itself without much of
needs and is expecting of the its day-to-day support infrastructure. Secretary for Transport
Ministry.
This PIF Review comes at a time and Chief Executive is alive
It is struggling to meet immediate
demands, while developing and
when the agency is undertaking a to the challenges and the
comprehensive and far-reaching
executing on near-term strategy and
transformation in its operating model need for change.
developing the very long-term view.
without having completely defined its
Consequently, the Ministry is:
conceptual frameworks or achieving
• finding it difficult to effectively clarity on its objective. The review
integrate the multitude of therefore offers an opportunity to
perspectives that exist across provide independent input to the
government Secretary for Transport’s strategic
• struggling to decide which tables it repositioning of the Ministry.
should be at The performance challenge and
• not well-positioned to exercise success scenario outlined below are
strong policy leadership as provided in this context.
integrated, multi-modal1 system-wide
analysis is not yet developed.
1 Transport in New Zealand is provided through several different modes, including land-based (road and rail), by air
and on water. Many transport modes rely on interconnections between these modes to enable people and goods
and services to complete the required journey. International conventions generally govern the individual modes and
this is reflected in the regulatory approach to and focus on the different transport modes in New Zealand.
Performance Improvement Framework – Review for the Ministry of Transport 12Performance
challenge
Performance Performance • leading a collaborative group
of government transport sector
challenge - outcomes challenge – agency agencies, each fulfilling its own role
New Zealanders want an effective, The Ministry has a vital role to deliver and supporting the responsibilities
efficient transport system that meets the transport system that New Zealand and roles of others.
their economic, social-cultural needs by: The Ministry’s leadership needs to be
and environmental needs now and facilitative and integrative – seeking
• articulating credible scenarios for
adapts to meet changing needs to orchestrate the transport system
the future that enable others to
and aspirations; that demands a to achieve optimum performance. It is
develop their understanding and
step-change. It means an integrated about synthesis, strategy and policy
engage in the discussion about
transport system that: settings, not ‘control’. The transport
transport challenges, options and
system is characterised by a very
• provides the platforms and choices for New Zealand, then
large number of players, with a variety
processes enabling New Zealanders synthesising policy and guidance
of ownership structures and decision
to gain equitable access to goods, from those discussions
rights. Many parts of the system
employment and services • providing advice to the Government operate in a commercial construct and
• optimises the potential of all modes that brings a more cohesive and some decision rights rest with another
and increases utilisation of the strategic transport perspective to layer of elected government.
transport system a range of economic and social
issues, such as urban development The Ministry’s performance challenge
• is resilient
and regional development, in terms of its transport system
• is safe for customers2 to use, stewardship and leadership roles sits
social cohesion and access to
delivering them seamless journeys in four key areas:
public services, tourism, and
• takes advantage of technology as it the environmental objectives for • achieving clarity of purpose
becomes available New Zealand
• developing a medium-term strategy
• anticipates disruptive change and • developing policy approaches, underpinned by strong analytics
makes the most of it. supported by strong data and
• embracing the ethos of, and
analytics and informed by the
the growing the capability for,
needs of customers and transport
collaboration
suppliers, that enable trade-offs
between modes to be identified, • re-booting the organisation
with the positive and negative
consequences clearly articulated
• supporting a regulatory framework
that anticipates future needs, is
adaptive and enabling of change,
can be used, where appropriate,
as a lever to drive incentives and is
efficient and effective recognising
the capabilities of the different
government entities operating in the
sector
2 Customers of the transport system include, as appropriate, passengers, drivers, cyclists, motorcyclists, pedestrians,
mariners and pilots, as well as individuals and firms who wish to send goods to another location.
Performance Improvement Framework – Review for the Ministry of Transport 13Achieving clarity of Developing a medium- This would provide a sound foundation
purpose term strategy underpinned for the leadership role it has to play
The transport system, across the
by strong analytics across the transport system. It is
hard to imagine that leadership being
board, is seeking clarity of purpose The Ministry is widely recognised for established without such analysis.
from the Ministry. It wishes to see this forward thinking in the 40-year horizon
expressed in its performance, in the and now needs to mature an integrated The Ministry is not starting from
actions the Ministry is taking and in medium-term (five-year) strategy, from scratch. It needs to evolve and
the behaviours it is exhibiting. These which actionable objectives can be integrate existing models and work,
should all reflect an organisation that determined and against which it can together with its partners, to aggregate
is leading the system, not acting as a be held accountable. This demands and assimilate the wide range of data
player in it that leads from time to time a much stronger assessment of that it currently collects or has access
when pushed to do so. transport as a system, incorporating to. In this way the system moves to a
modal interaction, modal transfers situation in which data is warehoused
The Ministry has undertaken and, as far as possible, there is open
and modal performance with a
some work as part of the recent access to it.
much more balanced emphasis on
Organisational Review to re-state its
rail, sea, air and road. This implies
purpose and now needs to involve and
a deep understanding of the users Embracing collaboration
engage key partners and stakeholders
and the actual and potential usages The Ministry will not be able to deliver
in the transport system and across
of transport and of what may unlock on its purpose or a medium-term
government to complete this process.
economic and social value. strategy without taking a collaborative
The needs and aspirations of end
customers of the transport system must Without being prescriptive, we are approach to its work. Purpose needs
be central to this work. of the view that this means working to be embraced system-wide. The real
towards the creation of a system-wide success of a medium-term strategy
In this way understanding and support comes from its being embraced by
simulation model, or group of models,
will develop amongst the key actors of others. It is not possible to imagine
to drive analysis on, for example:
their respective roles, responsibilities a comprehensive analytical platform
and accountabilities and the • resilience without others in the sector being
behaviours that are associated • pricing options engaged in that work, especially the
with them. regulating agencies.
• revenue forecasting
Importantly, in establishing its purpose, • policy choices for new technologies The Ministry will need to build enduring
the Ministry needs to be able to relationships with its partners and
• national value maximisation
articulate the impacts and outcomes it stakeholders, maturing its consultation
is seeking to achieve. • access policy and trade-offs
model to enable two-way flows of
• potential value capture engagement, debate and sector
• the needs of the customers who use participation. It must bring the needs of
the transport system. end users into that engagement model.
This sort of multi-modal simulation
approach will allow the Ministry to
produce compelling and authoritative
options analysis and provide policy
choices that are quantified and relevant
to the total transport system.
Performance Improvement Framework – Review for the Ministry of Transport 14True collaboration is relationship- Re-booting the Ministry These, together with other drivers, are
driven and requires the participants to conspiring to require a change in the
variously give up elements of control or Any organisation is an amalgam of way the Ministry does business.
decision rights in order to achieve buy- the circumstances and demands that
have driven it both in the past and To step up to the new demands,
in and results. The sort of leadership
are influencing it in the present. This the Ministry has to lift the fitness-
we are suggesting the Ministry
is no different for the Ministry. The for-purpose of many of its internal
embraces – a facilitative, orchestrating
organisation’s professional services corporate processes. It cannot and
style – cannot be achieved without
matrix approach over recent years has will not perform adequately under
genuine collaboration.
driven a responsiveness and project the current corporate systems and
The complex nature of the issues focus that is the envy of many. But, processes. It must also drive a
confronting the sector cannot be this has required compromise in other significant culture change towards a
solved by one part alone. It demands aspects of the Ministry’s business. It more purpose-driven, collaborative,
genuine co-production approaches has led to: influential, public service style.
with data, capability, and capacity
• breadth rather than depth and In driving this shift, the Ministry must
drawn from the whole as well as a
sector specialisation in its skill base be cognisant of its role across the
willingness to explore and synthesise
sector. It will need to bring partners
differing views, knowledge and • a focus on specific projects and
and stakeholders along with it,
experience. government priorities
not only seeking their input but
The Ministry is not beginning from • less emphasis on the Ministry’s communicating and testing ideas
a standing start if it embraces this stewardship responsibilities to with them throughout the policy
performance challenge. There are provide medium-term strategy and development process. This will
very well-regarded examples of policy advice. require a shift in approach to sector
collaboration and co-production in There are complex policy and governance driven much more by
the present environment. The best regulatory demands, which the sector impact and the needs of end
of these is the way in which the Ministry must address: users, than simple compliance.
Ministry, when asked, stepped up and • significant disruption on the horizon, Achieving all of this will require a
led jointly, with Auckland Council, especially in technology transition plan that is owned and
the Auckland Transport Alignment
• a wider policy context across driven by the Secretary for Transport
Project (ATAP)3. It has an industry-
government, including climate to ensure that the performance
respected model from which to
change, regional development and expectations are demonstrated to all.
mature this approach, develop it into a
equitable access to work and social
standardised methodology and apply
services
it in the other areas of its business.
• system drivers that are not just
limited to the efficiency of individual
modes but includes system
efficiency
• Auckland
• population growth.
3 The Auckland Transport Alignment Project (ATAP) set out an agreed strategic approach for the development of
Auckland’s transport system over the next 30 years, as well as an indicative package that illustrates the type
and quantum of investment likely to be required to deliver this strategic approach. The indicative package included
all operational and capital expenditure by NZTA, Auckland Transport, and KiwiRail in Auckland over the next 10
years and is intended to guide the development of statutory transport planning and funding documents.
Performance Improvement Framework – Review for the Ministry of Transport 15Implementation We have talked much about the …activating medium-term
The prescription for the four-year
Ministry as an ‘orchestrator’ of thinking and connecting it
excellence horizon outlined above is a
the system when we describe its to outcomes
leadership opportunity. An effective
demanding one, for which we make no system orchestrator: The Ministry has, in the Government
apologies, as we have high ambition Policy Statement on Land Transport4,
for the Ministry of Transport. It is • is proactive, as a consequence of a tool that it can use to connect
important, at this juncture, to record thinking in the longer term its medium-term thinking, as this is
that the Secretary for Transport and • understands the levers it has to pull progressed, to outcomes. Through
many in the Ministry are very aware of as well as those that are pulled by the current reorganisation the Ministry
the challenge they face, with strong, others is putting more resource into this
well-considered, deliberate change • navigates multiple authorising area and seeing it as an ongoing
already underway. environments - operating by programme of work, rather than a
influence, not by edict project to be delivered once every
The Ministry is in the middle of a
three years.
significant reorganisation and re- • has the trust and respect of all
orientation, seeking to move away players This is an important step, but we
from the professional services model • co-produces with system players think that there is more to do. The
of recent times and to enable and rather than consulting after the opportunity is to imagine a future in
support it leadership for the transport event which there is a statement of priorities
system. It is considering its future across the whole transport system
• effectively prioritises and is focused
role, the capabilities it needs to keep (as the Government Policy Statement
on results
and those it needs to grow. As noted on Land Transport currently sets out
above, as part of this reorganisation • holds itself and the system to funding priorities largely for road
the Ministry’s staff has worked account. safety policing, State highways, local
together to articulate a vision, an How then does the Ministry become roads and public transport) and to
aspirational purpose and three values this orchestrator and implement start thinking and working in that
to drive the organisation forward. This the four-year excellence horizon way. In the short-term this could yield
thinking and discussion will serve prescription outlined above? We think more insightful policy advice in the
them well for a broader discussion the way to achieve this is to focus on road transport mode. In the longer
with sector partners. three key actions. These are: term, as technological innovation
and disruption continues apace, it
The Secretary for Transport is • activating medium-term thinking and
could enable the Ministry to provide
leading the change and is working connecting it to outcomes
informed proactive advice across
effectively with staff to bring it about. • leading collaborative approaches to all modes.
He is making difficult leadership calls strategy and policy development
and thinking strategically about the
• using analytics as a tool for
support systems and processes that
orchestration.
need to be put in place to enable the
organisation.
4 The Government Policy Statement on Land Transport sets out the Government’s priorities for expenditure from the
National Land Transport Fund over the next 10 years. It is updated every three years.
Performance Improvement Framework – Review for the Ministry of Transport 16…leading collaborative …using analytics as a tool
approaches to strategy and for orchestration
policy development
To lead the transport system as an
Throughout this report we make much orchestrator requires an organisation
of the need for collaboration and we to develop a whole range of soft
think that the best way forward is for skills. These soft skills need to be
the Ministry to start practising it in underpinned by good data, robust
what it does. If someone is hatching analytics and clarity of synthesis. In
an idea on their own, the question the prescription, we make much of the
to put to staff is: “Why are you doing need for an integrated, multi-modal
that alone?”. The culture of the modelling system. To get started on
organisation needs to shift to be one this journey, analytics has to be the
in which collaboration is the norm. first cab off the rank.
The Ministry has made a good start The Ministry has access to rich
in this area with its involvement in data sets, as do other agencies in
ATAP. This marked a shift in approach, the system. Much could be done to
with the Ministry asked to lead, with improve access and management.
Auckland Council, a process involving These improvements can come from
Auckland Transport, the New Zealand continuing to grow and upskill the
Transport Agency (NZTA), State analytical capacity of an already
Services Commission (SSC) and the numerate Ministry as well as from
Treasury to agree principles to guide modernising the data management
transport investment in Auckland and systems and moving much more to an
to develop a programme of work. approach of open access (when this
Those involved saw this as a good, is appropriate).
robust and constructive process.
Alongside this work with existing
If the Ministry brings this collaborative data sets, the Ministry must start to
ethos to its total policy work define the future data needs of the
programme the quality of its work sector. This will come in part from
will continue to rise, there will be consideration of the significance for
increased alignment across the transport policy of ongoing innovation
system over time, the operational and disruption. It will also require
capacity of the Ministry will increase a broader analysis of transport as
and skillsets resident in individual a system, where the system as a
agencies will be leveraged across the whole is an enabler in economic,
whole system. An obvious next place environmental and social policy
for this approach to be used is in contexts.
medium-term strategy development for
the whole transport system.
Performance Improvement Framework – Review for the Ministry of Transport 17What will success
look like?
Here we outline some of the shifts The Ministry will be boldly leading The Ministry will have a reputation
that will be visible both within the challenging policy discussions, for for free, frank and fearless advice in
Ministry and across the sector it example on full network pricing in a the face of strong, robust (and larger)
leads, as it meets the performance post-excise tax world with universal agencies and industry players. Its
challenge. This is not a ‘list’ of things transport system access charging. systems, processes and approach to
that must be done rather it is a picture managing risk will be the exemplar for
Strong leadership results in a Ministry
describing the attributes of success a small Public Service agency.
culture that is Invested, Bold and
that will be apparent to all.
Collaborative and delivers on the End users will experience a transport
There will be a single unifying Ministry’s purpose. It will have wide system that delivers connected
‘statement of purpose’ driving the networks of excellence, including journeys that serves their needs.
Ministry and the sector to medium- partnerships with universities both at
term outcomes. The Ministry and its home and abroad. These will drive
sector agencies will be very clear well-defined future-thinking projects
about, and deliver on, their collective delivered together with stakeholders,
and individual responsibilities and targeted at system performance and
roles and agreed impacts and technology innovation.
objectives.
The staff of the Ministry will each have
A clearly established approach ‘line of sight’ to the purpose and key
through ‘data – analytics – insights – impacts that the Ministry is seeking in
system models – policy – action’ will its work. They will be well supported
characterise the work of the Ministry by the organisation’s systems and
and its collaborations. approaches to staff accountability and
staff development that make doing There will be a single
The Ministry’s 5-year strategy, and
the resulting policy advice for the
their job closer to ‘frictionless’. unifying ‘statement
transport system, will be more broadly There will be widespread interchange of purpose’ driving
integrated with wider government of and collaboration between, staff
policy, for example, with climate across the system (including the the Ministry and the
change policy and land use policy. private sector), leveraging its total sector to medium- term
The Ministry will have achieved
thinking capacity with operational
knowledge. This will have built the outcomes.
industry alignment on the major areas
Ministry’s credibility as the sector
of focus for the next five-year period
leader.
and the Government Policy Statement
on Land Transport will have evolved
into a continuously researched multi-
End users will
modal system instrument driving experience a transport
impact.
system that delivers
The Ministry will be the thought
leader on the broad front of technology
connected journeys that
affecting the transport system with this serve their needs.
thinking, oriented towards ‘opportunity’
and linked to consideration of the
policy challenges created.
Dr Paul Reynolds Dr Keith Turner
Lead Reviewer Lead Reviewer
Performance Improvement Framework – Review for the Ministry of Transport 18Strengths and
3
Opportunities
This PIF Review was undertaken in July 2017. The ratings and commentary
in the following sections reflect the Lead Reviewers’ findings at that time.
In this section:
Overview
Strengths and opportunities in detail
Performance Improvement Framework – Review for the Ministry of Transport 19Overview
Delivering Government Priorities Rating
Auckland
Transport for the regions
Transport and technology
Supporting the export economy
Multi-modal transport
Safety
Delivering Core Business
Rating Rating
(Value to customers (Increased value
& New Zealanders) over time)
Stewardship of the transport system
Investment
Research and statistics
Improving Crown entity performance
Regulatory stewardship
Needing Not able
Strong Well-placed Weak
development to rate
The ratings descriptions can be found in the appendices.
Performance Improvement Framework – Review for the Ministry of Transport 20Organisational Management
Leadership and Direction Rating
Purpose, Vision and Strategy
Leadership and Governance
Values, Behaviour and Culture
Review
Delivery for Customers and New Zealanders
Customers
Operating Model
Collaboration and Partnership
Experiences of the Public
Relationships
Engagement with Ministers
Sector Contribution
People Development
Leadership and Workforce Development
Management of People Performance
Engagement with Staff
Financial and Resource Management
Asset Management
Information Management
Financial Management
Risk Management
Needing Not able
Strong Well-placed Weak
development to rate
The ratings descriptions can be found in the appendices.
Performance Improvement Framework – Review for the Ministry of Transport 21Strengths and
opportunities in detail
The performance The Follow-up Review was scheduled
just under a year after the full
story so far review. The Lead Reviewer noted
The Ministry commissioned a PIF the Ministry’s progress on key areas
Review in mid-2013 and in 2014 identified in its agency response from
requested a PIF Follow-up Review 2013 and reiterated the message that
(Follow-up Review). the changes underway would take
years to fully complete and would
The PIF Review 2013 identified need steady and persistent attention.
that the Ministry was for the most
part responding well to government In July 2016, Peter Mersi was
priorities but needed to improve its appointed Secretary for Transport
performance in most core business and Chief Executive of the Ministry.
areas. Its delivery was seen to He commissioned this PIF Review for
be stronger in “focused policy mid-2017 alongside the organisational
programmes for which it had relatively change he is leading, to assist in
high control”. Weaker delivery was confirming the right areas of focus to
identified in “topics that spread across give effect to that change.
the transport sector for which the
Ministry had influence rather than
control”5.
The PIF Review 2013 noted that the
Ministry had invested in organisational
development over a number of
years and improvements were
acknowledged. The Lead Reviewers
confirmed that the Ministry needed
to continue this organisational
development while also improving
its strategic focus, leadership and
influence across the transport sector.
This required the Ministry to continue
to lift its policy capabilities, strategic
and long-term policy thinking and
investing in stakeholder relationships.
The PIF Review 2013 suggested the
Ministry needed to go harder and
faster to meet its goals.
5 Quotes in this paragraph are from PIF Follow-up Review 2014, Introduction, p4
Performance Improvement Framework – Review for the Ministry of Transport 22Delivering Government Priorities
This section focuses on the Ministry’s response to, and delivery on, the
Government’s priorities for the Ministry. While the Lead Reviewers consider
retrospective and current performance, their findings and ratings take into
account the scope and scale of the challenge to deliver on the Government’s
priorities over the next four years.
Government Priority 1: Auckland
Rating
The Government’s priorities for The ATAP work was a long time coming Future focus for: Auckland
transport for Auckland have been but, as is covered in the Four-year
to agree with Auckland Council a Excellence Horizon, it is a good case Collaboration with others to create
clear direction for the development of study of how the Ministry can work better transport outcomes in Auckland
Auckland’s transport system over the effectively with stakeholders on difficult will continue to be the Ministry’s
next 30 years and to make progress policy issues. It should replicate greatest challenge in the years ahead.
on The Government’s priorities for this approach with stakeholders in To deliver on this priority at the next
transport for Auckland have been Auckland and elsewhere. level will require resource prioritisation
to agree with Auckland Council a as well as multi-modal policy analysis
The challenge for the Ministry with that meets Auckland’s future needs.
clear direction for the development of
ATAP is to take it to the point where This will enable the Ministry to
Auckland’s transport system over the
it yields actual results. Whilst the provide proactive and relevant advice.
next 30 years and to make progress
principles are now agreed and a Establishing a multi-modal policy and
onimplementing agreed priority
programme of work defined, the analytical framework, well-supported by
projects. The Ministry has responded to
phasing of the programme is not yet data, forms a core part of the four-year
these priorities by:
settled. performance challenge for the Ministry.
• leading jointly with Auckland Council
There is a sense amongst key Auckland The Ministry as a whole will need
a successful collaborative effort -
stakeholders that the Ministry has to continue to devote resource to
ATAP - involving Auckland Transport,
insufficient operational understanding increasing its knowledge of Auckland
the Treasury, NZTA and SSC.
and needs to draw on the operational transport issues and develop the
ATAP published its Recommended
experience of others to enhance its capability and capacity to contribute
Strategic Approach to the
advice on difficult transport policy effectively at the level and pace
development of Auckland’s transport
issues. compelled by the city’s growth. It does
system in September 2016; this was
supplemented by an update this year. not have an option to take its own time
The Ministry credits the concentrated or it will quickly lose relevance.
efforts of its Auckland-based staff in
making this progress.
• progressing the City Rail Link. A
Heads of Agreement between the
Government and Auckland Council
was published in September
2016. This sets out in-principle
commitments by the two parties and
contains broad funding, governance
and risk management arrangements.
Performance Improvement Framework – Review for the Ministry of Transport 23You can also read
